How to avoid Credit card debts

Apr 19, 2012

Using credit card may appear as an important alternative to carrying cash during emergency situations or while shopping, but at the same time paying credit card bills and also getting overloaded with these bills at times is uncontrollable. Notwithstanding the other responsibilities that you need to take care of, managing the credit card payments might seem too oppressive on your pocket.

To fight this challenge of avoiding the credit card debts to rise ostensibly, let us enumerate some tips:

The first and foremost tip to eliminate credit card bills is to avoid using a credit card. If you are already using one, keep yourself at bay of buying another credit card. If this means that you need to stash cash at all times, do that.

Credit cards are offered by banks, both government and private banks. The credit card payments are stacked with interests rates on top of the actual bill amount. Different banks enforce different interest rates on the account. If you’ve more than one credit card payment pending and the bills are too high, start by calling the banks which charges the highest interest rates on your account. Negotiate with your creditor to lower the interest rates after explaining your difficulty in paying the bills. There are banks which will extend their support to you and you can make that card payment at much lower rate than expected.

There are other provisions offered to you by the banks e.g. balance transfer of funds. While opening an account with your bank find out if they offer you with interest rate notification, duration, balance fee transfer, and interest rate at the end of a promotional period (if there are any). If it suits you, transfer your debt to the new balance and pay it off with the new rate of interest.

Pay the accounts charging you with highest interest rates first.

While paying off your debts use the money from the accounts with low interest rates.

It is advisable to plan your expenses beforehand when there are other payments to be made on a monthly basis, especially the card payments which should never be neglected.

Try an alternative to your income tools. Getting a second job can be fruitful.

People end up spending a lot while shopping without tracking their expenditure. Try to shop smartly keeping an eye on the expenses you need to manage for your card payments

Once you are used to managing your account, do not let go of this habit and keep a track of your expenses on each occasion.

Stick to the plan and see how much difference it creates towards an organised lifestyle.